Correlation Between Moens Bank and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Moens Bank and Jyske Invest at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Moens Bank and Jyske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moens Bank AS and Jyske Invest Lange, you can compare the effects of market volatilities on Moens Bank and Jyske Invest and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Moens Bank with a short position of Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moens Bank and Jyske Invest.
Diversification Opportunities for Moens Bank and Jyske Invest
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Moens and Jyske is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Moens Bank AS and Jyske Invest Lange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Lange and Moens Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Moens Bank AS are associated (or correlated) with Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Lange has no effect on the direction of Moens Bank i.e., Moens Bank and Jyske Invest go up and down completely randomly.
Pair Corralation between Moens Bank and Jyske Invest
Assuming the 90 days trading horizon Moens Bank AS is expected to generate 2.76 times more return on investment than Jyske Invest. However, Moens Bank is 2.76 times more volatile than Jyske Invest Lange. It trades about 0.18 of its potential returns per unit of risk. Jyske Invest Lange is currently generating about -0.05 per unit of risk. If you would invest 22,600 in Moens Bank AS on November 3, 2024 and sell it today you would earn a total of 1,200 from holding Moens Bank AS or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moens Bank AS vs. Jyske Invest Lange
Performance |
| Timeline |
| Moens Bank AS |
| Jyske Invest Lange |
Moens Bank and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moens Bank and Jyske Invest
The main advantage of trading using opposite Moens Bank and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moens Bank position performs unexpectedly, Jyske Invest can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jyske Invest will offset losses from the drop in Jyske Invest's long position.| Moens Bank vs. Skjern Bank AS | Moens Bank vs. Lollands Bank | Moens Bank vs. Nordfyns Bank AS | Moens Bank vs. Groenlandsbanken AS |
| Jyske Invest vs. Scandinavian Medical Solutions | Jyske Invest vs. Carnegie Wealth Management | Jyske Invest vs. TROPHY GAMES Development | Jyske Invest vs. Laan Spar Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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